Foreign Direct Investment in Spain – National Defense

Published in Wolters Kluwer

Below, we will consider the most important questions regarding the Spanish rules on FDI in relation to national defense.

With the much-debated reforms to Act 19/2003, of 4 July, on capital movements (“Act 19/2003”), the Spanish foreign direct investment (“FDI”) regime has been expanded over the past few years.  However, FDI screening in relation to defense investments predates Act 19/2003 (and the recent FDI hype more broadly), and was regulated in Royal Decree 664/1999 of 23 April, on foreign investments (“RD 664/1999”).  More precisely, Article 11 suspends the general liberalization regime for investments in “activities directly related to defense”.  Both regimes apply concurrently to investments in defense in Spain.

The entire content of the article can be found here.

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